Signed Final Report and Financial Statements Revised

TOWN OF WATERFORD, CONNECTICUT 
ANNUAL COMPREHENSIVE 
FINANCIAL REPORT 
FOR THE FISCAL YEAR ENDED 
JUNE 30, 2021 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Town of Waterford, Connecticut 
 
Annual Comprehensive Financial Report 
 
FOR THE FISCAL YEAR ENDED 
JUNE 30, 2021 
 
 
 
 
 
 
 
 
 
 
 
 
Department of Finance 
 
Kimberly Allen 
 
Director of Finance 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Introductory Section 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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i 
TOWN OF WATERFORD, CONNECTICUT 
TABLE OF CONTENTS 
JUNE 30, 2021 
 
Introductory Section 
Page 
 
 
 
 
Table of Contents 
i-ii 
 
Organizational Chart 
iii 
 
List of Elected and Appointed Officials 
iv 
 
Transmittal Letter 
v-ix 
 
 
 
 
Financial Section 
 
 
 
 
 
Independent Auditors’ Report 
1-3 
 
Management’s Discussion and Analysis  
4-12 
 
 
 
 
Basic Financial Statements 
 
 
 
 
Exhibit 
 
 
 
Government-Wide Financial Statements: 
 
I 
Statement of Net Position 
13 
II 
Statement of Activities 
14 
 
 
 
 
Fund Financial Statements: 
 
III 
Balance Sheet - Governmental Funds 
15-16 
IV 
Statement of Revenues, Expenditures and Changes in Fund Balances - 
 
 
Governmental Funds 
17-18 
V 
Statement of Net Position - Proprietary Funds 
19 
VI 
Statement of Revenues, Expenses and Changes in Net Position - 
 
 
Proprietary Funds  
20 
VII 
Statement of Cash Flows - Proprietary Funds 
21 
VIII 
Statement of Net Position - Fiduciary Funds 
22 
IX 
Statement of Changes in Net Position - Fiduciary Funds 
23 
 
Notes to Financial Statements 
24-68 
 
 
 
 
Required Supplementary Information 
 
 
 
 
RSI-1 
Schedule of Revenues and Other Financing Sources - General Fund - Budgetary  
 
 
   Basis 
69-70 
RSI-2 
Schedule of Expenditures and Other Financing Uses Budget and Actual -  
 
 
General Fund - Budgetary Basis 
71-74 
RSI-3 
Schedule of Changes in Net Pension Liability and Related Ratios -  
 
 
Pension Trust Fund 
75 
RSI-4 
Schedule of Employer Contributions - Pension Trust Fund 
76 
RSI-5 
Schedule of Investment Returns - Pension Trust Fund 
77 
RSI-6 
Schedule of the District’s Proportionate Share of the Net Pension Liability - 
 
 
   Municipal Employees Retirement System 
78 
RSI-7 
Schedule of Employer Contributions - Municipal Employees Retirement System 
79 
RSI-8 
Schedule of the Town’s Proportionate Share of the Net Pension Liability - 
 
 
   Teachers Retirement System 
80 
RSI-9 
Schedule of Changes in the Net OPEB Liability and Related Ratios - OPEB 
 
 
   Trust Fund 
81 
 
 
 
 

ii 
Exhibit 
 
Page 
 
 
 
RSI-10 
Schedule of Employer Contributions - OPEB Trust Fund 
82 
RSI-11 
Schedule of Investment Returns - OPEB Trust Fund 
83 
RSI-12 
Schedule of the Town’s Proportionate Share of the Net OPEB Liability - 
 
 
   Teachers Retirement System 
84 
 
 
 
 
Supplemental, Combining and Individual Fund Statements and Schedules 
 
 
 
 
 
General Fund: 
 
A-1 
Schedule of Expenditures and Encumbrances Compared with Appropriations 
85 
A-2 
Report of Tax Collector - General Fund 
86 
A-3 
Schedule of Water Main Assessments Receivable - General Fund 
87 
A-4 
Schedule of Sewer Assessments Receivable - General Fund 
88 
 
 
 
 
Nonmajor Governmental Funds: 
 
B-1 
Combining Balance Sheet - Nonmajor Government Funds 
89-92 
B-2 
Combining Statement of Revenues, Expenditures and Changes in Fund Balances  
 
 
- Nonmajor Governmental Funds 
93-97 
 
 
 
 
Fiduciary Funds: 
 
C-1 
Combining Statement of Fiduciary Net Position - Pension and Other 
98 
 
  Employee Benefit Trust Funds 
 
C-2 
Combining Statement of Changes in Fiduciary Net Position - Pension and Other 
 
 
  Employee Benefit Trust Funds 
99 
 
 
 
 
 
 
 
Statistical Section 
 
 
 
 
Table 
 
 
 
Financial Trends: 
 
1 
Net Position by Component 
100 
2 
Changes in Net Position 
101-102 
3 
Fund Balances of Governmental Funds 
103 
4 
Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 
104 
 
Revenue Capacity: 
 
5 
Assessed Value and Estimated Actual Value of Taxable Property 
105 
6 
Principal Property Taxpayers 
106 
7 
Property Tax Levies and Collections 
107 
 
Debt Capacity: 
 
8 
Ratio of Outstanding Debt by Type 
108 
9 
Schedule of Debt Limitation 
109 
10 
Legal Debt Margin Information 
110 
 
Demographic and Economic Statistics: 
 
11 
Demographic and Economic Statistics 
111 
12 
Principal Employers 
112 
 
Operating Information: 
 
13 
Full-Time Equivalent Government Employees by Function/Program 
113 
14 
Operating Indicators by Function/Program 
114 
15 
Capital Asset Statistics by Function/Program 
115 

ORGANIZATIONAL CHART TOWN OF WATERFORD GENERAL GOVERNMENT
Elected Board
Appointed Board
Appointed Official
Appointed by
Reports to
Elected Official
Personnel
Review Board
Ethics
Commission
Police
Chief
Police
Commission
Director of
Senior
Services
Senior
Citizens
Commission
Chief
Engineer
Utility
Commission
Building
Commitee(s)
Representative
Town Meeting
Board of
Education
Zoning Board
of Appeals
Flood &
Erosion Control
Board
Waterford
Shellfish
Commission
Director of
Finance
Department
Waterford
East Lyme
Shellfish Comm.
Harbor
Management
Commission
Youth
Services
Advisory Comm
Housing
Code
Appeals Brd
Building
Board of
Appeals
Housing
Authority
Planning &
Zoning
Commission
Director of
Public Works
Department
Town
Attorney
Director of
Recreation &
Parks Dept.
Recreation &
Parks
Commission
Operations &
Administrative
Officers
Director of
Emergency
Management
Board of
Selectmen
Tax
Collector
Treasurer
Town
Clerk
Assessor
Ledge Light
Health
District
Youth Services
Director
Director
Human
Resources
Director of
Planning
Building
Official
Emergency
Management
Advisory Coun.
Fire Service
Director of
Fire Services
Economic
Development
Commission
Conservation
Commission
First
Selectman
Registrars
of Voters
Board of
Assessment
Appeals
Board of
Finance
iii

Town of Waterford, Connecticut 
Principal Town Officials 
As of June 30, 2021 
 
 
 
Robert J. Brule, Jr.  
Thomas W. Giard III 
Kimberly Allen  
Abbas Danesh  
Abby Piersall 
Gary Schneider 
Brett Mahoney 
Neftali Soto 
Alan Wilensky 
Vacant 
Brian Flaherty 
Lisa Cappuccio 
David Campo 
Daniela Gorman 
John Murphy 
Christine Johnson 
Michael Howley 
Vacant 
First Selectman 
Superintendent of Schools 
Director of Finance 
Treasurer 
Planning Director 
Director of Public Works 
Chief of Police 
Chief Engineer, Utilities Commission 
Tax Collector 
Assessor 
Recreation & Parks Director 
Director of Senior Services 
Town Clerk 
Director of Youth Services 
Building Official 
Library Director 
Director of Fire Services 
Director of Human Resources 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
iv 

v 
 
 
 
December 17, 2021 
 
To the Honorable First Selectman, Representative Town Meeting and the Citizens 
of the Town of Waterford: 
 
State law requires that every general-purpose local government publish within six 
months of the close of each fiscal year a complete set of audited financial 
statements.  This report is published to fulfill that requirement for the fiscal year 
ended June 30, 2021. 
 
Management assumes full responsibility for the completeness and reliability of the 
information contained in this report, based upon a comprehensive framework of 
internal control that it has established for this purpose.  Because the cost of internal 
control should not exceed anticipated benefits, the objective is to provide 
reasonable, rather than absolute, assurance that the financial statements are free 
of any material misstatements. 
 
CliftonLarsonAllen LLP (CLA), Certified Public Accountants, have issued an 
unqualified opinion on the Town of Waterford financial statements for the year 
ended June 30, 2021.  The independent auditors’ report is located at the front of 
the financial section of this report. 
 
Management Discussion and Analysis (MD&A) immediately follows the independent 
auditor’s report and provides a narrative introduction, overview and analysis of the 
basic financial statements.  The MD&A complements this letter of transmittal and 
should be read in conjunction with it. 
 
Profile of the Government 
 
The Town of Waterford separated from the City of New London, the neighboring 
urban seaport, a century and a half after European settlers arrived.  Waterford was 
incorporated in 1801.  Covering an area of 33.2 square miles, the Town is located 
in the southeastern region of the state.  Waterford is bordered by the Towns of East 
Lyme to the west, New London, Groton and Ledyard to the east, and Montville to 
the north.  It borders Long Island Sound to the south.  
 
The Town has a Selectmen/Board of Finance/Representative Town Meeting form of 
government.  The Representative Town Meeting exercises the legislative authority 
of the Town.  The Board of Selectmen is composed of three members who are 

vi 
elected at large for four-year terms.  The Representative Town Meeting is elected 
for two-year terms.  The First Selectman is the head of the administrative branch of 
the Town Government and is responsible to the Representative Town Meeting for 
the administration of all affairs relating to the Town. 
 
The Town of Waterford provides a full range of services, including police and fire 
protection; the construction and maintenance of highways, streets and other 
infrastructure; municipal solid waste and recycling collection; recreational and 
cultural activities.  Municipal water and sewer services, the Town’s one business-
type activity, are provided through the Town’s Utility Commission. 
 
By Charter, the Representative Town Meeting must hold its Town Budget Meeting 
no later than the first Monday in May each year.  If, within fifteen days of the budget 
adoption no referendum is called, the budget is considered approved.  The annual 
budget serves as the foundation for Town of Waterford financial planning and 
control.  The budget is prepared by Department/Agency at an object level.  With the 
exception of the Police, Recreation and Parks, Senior Services, Utility and Planning 
and Zoning Commissions, Board of Finance, Board of Education, Board of 
Assessment Appeals, Zoning Board of Appeals, Building Board of Appeals, 
Economic Development Commission, Flood & Erosion Control Board, Conservation 
Commission, Retirement Commission, Harbor Management Commission and Ethics 
Commission, all other Town Boards, Commissions or agencies report to the Board 
of Selectmen.  The Board of Selectmen, however, reviews and recommends to the 
Board of Finance the level of appropriation for all municipal budgets with the 
exception of the Board of Education. All agencies have the authority to transfer 
within series any of the budgeted appropriations under their control.  Transfers out 
of series, however, require special approval from the Board of Finance. 
 
Local Economy 
 
Waterford is unique in that its major taxpayer is a nuclear power facility.  However, 
numerous, large retail sales outlets, a production/software development company, 
several assisted care facilities and numerous financial institutions provide a good 
mix to tax base diversification.  The Waterford Tax Base has a diversified tax base 
with immediate access to Routes 1, 95, 395 and 85 all of which are major 
Connecticut arteries.  
 
 
Dominion Power Facility (Millstone) 
◦ 
Impact Analysis Completed 
◦ 
Increase Economic development 
◦ 
Viable Tax payer for at least ten years – Declining tax 
revenue  
◦ 
10-Year Deal 
◦ 
$50M in updates since agreement signed in January 
2019  
 
 
 

vii 
Jordan Village District  
◦ 
Zone changes approved to support the area surrounding an 
established historic district 
◦ 
District will focus on small businesses, small multi-family and 
mixed use projects 
 
Waterford Station 
◦ 
Permitted retail development adjacent to Waterford Commons. 
Successful OSTA review. 
 
Economic Development Commission Master Plan 
◦ 
Emphasis on pushing economic development 
◦ 
Restructure of economic development department 
◦ 
Changes in zoning and permitting to streamline reviews, and 
encourage flexibility for small businesses  
 
New Developments 
◦ 
98 apartments on Willetts Avenue approved.  
◦ 
171 Rope Ferry Rd – 52 Units – 40% Affordable Housing still under 
construction 
◦ 
Redevelopment of a gas filling station and convenience store at 446 
Boston Post Road approved. 
◦ 
Special Permit for Agri-Tourism location at 116 Old Colchester Road 
approved 
◦ 
Ongoing planning for 40 affordable apartments on Rte 85 
◦ 
Solar Facility on Oil Mill Road permitted 
◦ 
Construction underway for new office space at Mago Point 
◦ 
Permitting and start of construction for medical office facility (Hartford 
Healthcare) on Dayton Road 
 
New Industry 
◦ 
Cross Rd Surgery – 2000 sq. ft. expansion project completed Tractor 
Supply – open 
◦ 
Hartford Healthcare medical offices have opened on the site of the 
old Toys R Us location 
 
Electric Boat 
◦ 
$5.1B Navy Contract – estimated 2,000 to 5,000 jobs 
◦ 
Building of Columbia Class Submarines to begin in 2023 
◦ 
Current impact – Increased housing activity 
 
 
 
 

viii 
 
Long Term Financial Planning 
 
In 1998 the Representative Town Meeting formed its Long Range Fiscal Planning 
Committee.  In FY01 the Board of Finance appointed an Ad Hoc Long-Range Budget 
Planning Committee to analyze the impact of the annual tax revenue loss due to the 
Dominion deregulation and to provide guidance in developing budgets that would sustain 
a consistent level of service with a declining revenue base over the ten-year period.  
This proactive approach to long-range operational budget planning, combined with multi-
year capital planning, has become an effective budgetary management tool.  Despite the 
fact that the Town has successfully absorbed the impact to its tax base due to 
deregulation, the Long-Range Budget Planning Committee remains active and is in the 
process of developing an updated long-term financial plan based of GFOA guidelines. 
 
The Town implemented a Fleet Management Program that served as the basis for 
sizing the fleet and provided a 5 year approach to managing a fleet valued in 
excess of $4.4 million.  This program allows the Town to undertake a needs 
assessment of its rolling stock, and based upon established life-cycle parameters, 
provided a forty-year replacement plan that uses a combination of residual values, 
investment income, vehicle rental revenues and an equalized level of budget over a 
sustained period of time to fund all rolling stock replacements. 
 
 
 
Major Initiatives 
 
In compliance with GASB 54 and to strengthen Waterford’s commitment to sound 
financial management and fiscal accountability, the Town still maintains the adopted 
fund balance policy from 2015.  In that regard, the Town’s 2021 Audited Financial 
Waterford has an Unassigned Fund Balance of $22,981,081   
 
In May of 2019, the Town began the first phase of the construction on a new 
Municipal Complex project for the Public Works Department.   The project consists 
of a full demolition of the existing structure and construction of a new 60,100 sq. ft. 
facility. The cost of the project was bonded in July 2020 and the project is expected 
to be complete in early Fall 2021.  
 
Increase school enrollment 
◦ 
Attract students from neighboring districts to Waterford High School 
on a tuition basis 
◦ 
5 students enrolled in 2021 

ix 
Eco Friendly Town 
◦ 
Achieved Bronze Certificate as a Sustainable CT Community 
◦ 
Land Preservation  
◦ 
Easements, Purchase and Donations 
◦ 
Plan of Conservation and Development 
◦ 
DEEP analysis 
◦ 
Fall 2019-2021  
◦ 
Energy audit of buildings 
◦ 
LED Streetlight conversion project completed  
  
Affordable Housing Plan 
◦ 
Assessing housing needs for the future 
◦ 
In process of collecting data to fit into regional area needs 
Town Center Improvements (“Main Street”) 
◦ 
Committee Formed in June 2020 
◦ 
Support Infrastructure for Farmer’s Market 
◦ 
Improved Recreational Amenities 
◦ 
Accessible walking paths, sidewalks and boardwalks 
◦ 
Improved Fiber Connectivity 
◦ 
Board of Selectman adoption of the Community Waterford Park 
Master Plan 
 
 
Acknowledgements 
 
Although the preparation of the comprehensive annual financial report is primarily 
the responsibility of the Director of Finance, it could not have been accomplished 
without the support of numerous town staff.  Special recognition goes to the 
Finance department staff.  Without their dedication, oversight and hard work the 
Town could never have achieved this prestigious award.  I appreciate the 
unflagging support of First Selectman Robert Brule, Superintendent of Schools 
Thomas Girard and his staff, as well as, the entire Board of Selectmen, Board of 
Finance and the Representative Town Meeting who continually show their 
commitment to fiscal integrity and financial leadership. 
 
Respectfully submitted, 
 
 
 
Kimberly Allen 
Director of Finance 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Financial Section 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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accounting and consulting firms. See nexia.com/member-firm-disclaimer for details. 
CliftonLarsonAllen LLP 
CLAconnect.com 
1 
Independent Auditors’ Report 
To the Board of Finance 
Town of Waterford, Connecticut 
Report on the Financial Statements 
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, each major fund and the aggregate remaining fund information of the Town of Waterford, 
Connecticut, as of and for the year ended June 30, 2021, and the related notes to the financial 
statements, which collectively comprise the Town of Waterford, Connecticut’s basic financial 
statements as listed in the table of contents.   
Management’s Responsibility for the Financial Statements 
Management is responsible for the preparation and fair presentation of these financial statements in 
accordance with accounting principles generally accepted in the United States of America; this includes 
the design, implementation and maintenance of internal control relevant to the preparation and fair 
presentation of financial statements that are free from material misstatement, whether due to fraud or 
error. 
Auditors’ Responsibility  
Our responsibility is to express opinions on these financial statements based on our audit.  We 
conducted our audit in accordance with auditing standards generally accepted in the United States of 
America and the standards applicable to financial audits contained in Government Auditing Standards, 
issued by the Comptroller General of the United States.  Those standards require that we plan and 
perform the audit to obtain reasonable assurance about whether the financial statements are free from 
material misstatement.   
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in 
the financial statements.  The procedures selected depend on the auditors’ judgment, including the 
assessment of the risks of material misstatement of the financial statements, whether due to fraud or 
error.  In making those risk assessments, the auditor considers internal control relevant to the entity’s 
preparation and fair presentation of the financial statements in order to design audit procedures that are 
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness 
of the entity’s internal control.  Accordingly, we express no such opinion.  An audit also includes 
evaluating the appropriateness of accounting policies used and the reasonableness of significant 
accounting estimates made by management, as well as evaluating the overall presentation of the 
financial statements. 
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for 
our audit opinions. 

2 
Opinions 
In our opinion, the financial statements referred to above present fairly, in all material respects, the 
respective financial position of the governmental activities, the business-type activities, each major fund 
and the aggregate remaining fund information of the Town of Waterford, Connecticut, as of June 30, 
2021 and the respective changes in financial position and, where applicable, cash flows thereof for the 
year then ended in accordance with accounting principles generally accepted in the United States of 
America. 
Emphasis of a Matter 
During fiscal year ended June 30, 2021, the Town of Waterford, Connecticut adopted GASB Statement 
No. 84, Fiduciary Activities. As a result of the implementation of this standard, the Town of Waterford, 
Connecticut reported a restatement for the change in accounting principle (see Note 15). Our auditors’ 
opinion was not modified with respect to the restatement. 
 
Other Matters 
Required Supplementary Information 
Accounting principles generally accepted in the United States of America require that the 
management’s discussion and analysis, the budgetary comparison information and the pension and 
OPEB schedules, as listed in the table of contents, be presented to supplement the basic financial 
statements.  Such information, although not a part of the basic financial statements, is required by the 
Governmental Accounting Standards Board, which considers it to be an essential part of financial 
reporting for placing the basic financial statements in an appropriate operational, economic or historical 
context.  We have applied certain limited procedures to the required supplementary information in 
accordance with auditing standards generally accepted in the United States of America, which 
consisted of inquiries of management about the methods of preparing the information and comparing 
the information for consistency with management’s responses to our inquiries, the basic financial 
statements and other knowledge we obtained during our audit of the basic financial statements.  We do 
not express an opinion or provide any assurance on the information because the limited procedures do 
not provide us with sufficient evidence to express an opinion or provide any assurance. 
Other Information 
Our audit was conducted for the purpose of forming opinions on the financial statements that 
collectively comprise the Town of Waterford, Connecticut’s basic financial statements.  The introductory 
section, combining and individual nonmajor fund financial statements and schedules, and statistical 
section are presented for purposes of additional analysis and are not a required part of the basic 
financial statements.   
The combining and individual nonmajor fund financial statements and schedules are the responsibility 
of management and were derived from and relate directly to the underlying accounting and other 
records used to prepare the basic financial statements.  Such information has been subjected to the 
auditing procedures applied in the audit of the basic financial statements and certain additional 
procedures, including comparing and reconciling such information directly to the underlying accounting 
and other records used to prepare the basic financial statements or to the basic financial statements 
themselves, and other additional procedures in accordance with auditing standards generally accepted 
in the United States of America.  In our opinion, the combining and individual nonmajor fund financial 
statements and schedules are fairly stated in all material respects in relation to the basic financial 
statements as a whole.   
The introductory and statistical sections have not been subjected to the auditing procedures applied in 
the audit of the basic financial statements, and, accordingly, we do not express an opinion or provide 
any assurance on them. 

3 
Other Reporting Required by Government Auditing Standards 
In accordance with Government Auditing Standards, we have also issued our report dated  
December 17, 2021 on our consideration of the Town of Waterford, Connecticut’s internal control over 
financial reporting and on our tests of its compliance with certain provisions of laws, regulations, 
contracts, and grant agreements and other matters.  The purpose of that report is solely to describe the 
scope of our testing of internal control over financial reporting and compliance and the results of that 
testing, and not to provide an opinion on the effectiveness of the Town of Waterford, Connecticut’s 
internal control over financial reporting or on compliance.  That report is an integral part of an audit 
performed in accordance with Government Auditing Standards in considering the Town of Waterford, 
Connecticut’s internal control over financial reporting and compliance. 
 
 
 
 
CliftonLarsonAllen LLP 
West Hartford, Connecticut 
December 17, 2021 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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4 
 
TOWN OF WATERFORD, CONNECTICUT 
MANAGEMENT’S DISCUSSION AND ANALYSIS 
JUNE 30, 2021 
 
This discussion and analysis of the Town of Waterford, Connecticut (the Town) financial performance is prepared 
by management to provide an overview of the Town’s financial activities for the fiscal year ended June 30, 2021.  
Please read this MD&A in conjunction with the transmittal letter and the Town’s financial statements, Exhibits I to 
IX. 
 
FINANCIAL HIGHLIGHTS 
 
• 
The Town’s net position decreased as a result of this year’s operations.  While net position of our 
business-type activities decreased by $1.6 million, or 3.1 %, net position of our governmental activities 
decreased by $688 thousand after restatement or 0.4 %.   
• 
During the year, the Town had expenses that were $2.3 million more than the $121.6 million generated in 
tax and other revenues for governmental programs.   
• 
In the Town’s business-type activities, revenues and transfers in increased by $39 thousand or 1.0%, while 
expenses increased by $81.0 thousand or 1.5 %. 
• 
The total cost of all of the Town’s programs was $123.9 million, with no new programs added this year. 
• 
The General Fund reported a fund balance this year of $23.8 million.   
• 
The resources available for appropriation were $1.7 million more than anticipated for the General Fund.  
There were additional appropriations of $41.1 thousand to transfer funding to the Capital Improvement 
Fund.  However, unused appropriations of $2.2 million were returned to fund balance at yearend.  Overall, 
the operating results increased the General Fund balance by $3.9 million 
 
OVERVIEW OF THE FINANCIAL STATEMENTS 
 
This annual report consists of a series of financial statements.  The statement of net position and the statement of 
activities (Exhibits I and II, respectively) provide information about the activities of the Town as a whole and 
present a longer-term view of the Town’s finances.  Fund financial statements are presented in Exhibits III to IX.  
For governmental activities, these statements tell how these services were financed in the short term as well as what 
remains for future spending.  Fund financial statements also report the Town’s operations in more detail than the 
government-wide statements by providing information about the Town’s most significant funds.  The remaining 
statements provide financial information about activities for which the Town acts solely as a trustee or agent for the 
benefit of those outside of the government. 
 
Government-Wide Financial Statements 
 
Our analysis of the Town as a whole begins on Exhibits I and II.  These statements include all assets and liabilities 
using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies.  
All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid. 
 
These two statements report the Town’s net position and changes in it.  Over time, increases or decreases in the 
Town’s net position are one indicator of whether its financial health is improving or deteriorating.  The reader 
needs to consider other non-financial factors, however, such as changes in the Town’s property tax base and the 
condition of the Town’s capital assets, to assess the overall health of the Town. 
 
 
 
 

5 
 
In the statement of net position and the statement of activities, we divide the Town into two types of activities: 
 
• 
Governmental Activities - Most of the Town’s basic services are reported here, including education, public 
safety, public works, recreation, library, social services and general administration.  Property taxes, charges 
for services, and state and federal grants finance most of these activities. 
 
• 
Business-Type Activities - The Town charges a fee to customers to help it cover all or most of the cost of 
certain services it provides.  The Town’s Utility Commission Enterprise Fund is reported here.   
 
Fund Financial Statements 
 
The fund financial statements begin with Exhibit III and provide detailed information about the most significant 
funds - not the Town as a whole.  Some funds are required to be established by Charter.  However, the Board of 
Finance establishes many other funds to help control and manage money for particular purposes or to show that it is 
meeting legal responsibilities for using grants and other money (i.e. grants received for education from the State 
and Federal Government).  The Town’s funds are divided into three categories: governmental, proprietary and 
fiduciary. 
 
• 
Governmental Funds (Exhibits III and IV) - Most of the Town’s basic services are reported in 
governmental funds, which focus on how money flows into and out of those funds and the balances left at 
year-end that are available for spending.  These funds are reported using an accounting method called 
modified accrual accounting, which measures cash and all other financial assets that can readily be 
converted to cash.  The governmental fund statements provide a detailed short-term view of the Town’s 
general government operations and the basic services it provides.  Governmental fund information helps to 
determine whether there are more or fewer financial resources that can be spent in the near future to finance 
the Town’s programs.  The relationship (or differences) between governmental activities (reported in the 
statement of net position and the statement of activities) and governmental funds is described in a 
reconciliation included with the fund financial statements. 
 
• 
Proprietary Funds (Exhibits V to VII) - When the Town charges customers for the services it provides, 
whether to outside customers or to other units of the Town, these services are generally reported in 
proprietary funds.  Proprietary funds are reported in the same way that all activities are reported in the 
statement of net position and the statement of activities.  In fact, the Town’s enterprise fund (a component 
of proprietary funds) is the same as the business-type activities reported in the government-wide 
statements, but provide more detail and additional information, such as cash flows, for proprietary funds.  
Internal service funds (the other component of proprietary funds) are used to report activities that provide 
supplies and services for the Town’s other programs and activities - such as the Town’s Insurance 
Administration Fund. 
 
• 
Fiduciary Funds (Exhibits VIII and IX) - The Town is the trustee, or fiduciary, for its employees’ pension 
plans.  It is also responsible for other assets that, because of a trust arrangement, can be used only for the 
trust beneficiaries.  All of the Town’s fiduciary activities are reported in separate statements of fiduciary 
net position and changes in fiduciary net position.  These activities are excluded from the Town’s other 
financial statements because the Town cannot use these assets to finance its operations.  The Town is 
responsible for ensuring that the assets reported in these funds are used for their intended purposes. 
 

6 
 
GOVERNMENT-WIDE FINANCIAL ANALYSIS 
 
The Town’s combined net position decreased from $210.7 to $208.4 million or 1.1 %.  The analysis below focuses 
on the net position (Table 1) and changes in net position (Table 2) of the Town’s governmental and business-type 
activities. 
 
Governmental
Business-Type
Activities
Activities
Total
2021
2020
2021
2020
2021
2020
Current assets 
$
54,085
       
$
46,328
           
$
5,413
         
$
5,331
             
$
59,498
       
$
51,659
           
Capital assets, net of
 accumulated depreciation
241,132
     
243,891
         
45,671
       
47,418
           
286,803
     
291,309
         
Total assets
295,217
     
290,219
         
51,084
       
52,749
           
346,301
     
342,968
         
Deferred outflows of resources
18,301
       
17,947
           
-
                 
-
                     
18,301
       
17,947
           
Long-term debt outstanding   
135,326
     
134,964
         
316
            
345
                
135,642
     
135,309
         
Other liabilities
11,226
       
8,251
             
330
            
378
                
11,556
       
8,629
             
Total liabilities
146,552
     
143,215
         
646
            
723
                
147,198
     
143,938
         
Deferred inflows of resources
8,998
         
6,296
             
-
                 
-
                     
8,998
         
6,296
             
Net Position: 
Net investment in capital assets
165,530
     
177,425
         
45,670
       
47,417
           
211,200
     
224,842
         
   Restricted  
1,440
         
127
                
-
                 
-
                     
1,440
         
127
                
   Unrestricted
(9,002)
        
(18,897)
          
4,768
         
4,609
             
(4,234)
        
(14,288)
          
Total Net Position
$
157,968
     
$
158,655
         
$
50,438
       
$
52,026
           
$
208,406
     
$
210,681
         
 
Net position of the Town’s governmental activities decreased by 0.4 % ($158.0 million in 2021 compared to 158.7 
million in 2020).  Unrestricted net position - the part of net position that can be used to finance day-to-day 
operations without constraints established by debt covenants, enabling legislation or other legal requirements – 
decreased by $9.9 million ($18.9 million) in 2020 compared to ($9.0 million) at the end of this year. 
 
By far the largest portion of the Town’s net position is its investment in capital assets (e.g., land, buildings, 
machinery and equipment).  Since the Town’s investment in its capital assets, net of accumulated depreciation, 
must also be reported net of related debt, it should be noted that the Town’s outstanding debt is related to bonds 
payable as of June 30, 2021. 
 
The net position of our business-type activities decreased by 3.1% ($50.4 million in 2021 compared to $52.0 
million in 2020). 

7 
 
The Town’s total revenues (excluding special items) were $121.6 million.  The total cost of all programs and 
services was $123.9 million.  Our analysis below separately considers the operations of governmental and business-
type activities. 
 
Governmental
Business-Type
Activities
Activities
Total
2021
2020
2021
2020
2021
2020
Revenues:
Program revenues:
Charges for services
$
3,346
        
$
3,091
        
$
3,841
        
$
3,710
        
$
7,187
        
$
6,801
        
Operating grants and contributions
19,990
      
13,901
      
19,990
      
13,901
      
Capital grants and contributions
578
           
658
           
16
594
           
658
           
General revenues:
Property taxes
93,198
92,136
93,198
      
92,136
      
Grants and contributions not  
 restricted to specific purposes
356
351
356
           
351
           
Unrestricted investment earnings
133
1,082
3
              
47
             
136
           
1,129
        
Miscellaneous revenue
175
197
175
           
197
           
      Total revenues
117,776
    
111,416
    
3,860
        
3,757
        
121,636
    
115,173
    
Program expenses:
General government  
15,705
      
15,856
      
15,705
      
15,856
      
Public safety  
13,999
      
13,150
      
13,999
      
13,150
      
Public works
8,780
        
8,086
        
8,780
        
8,086
        
Recreation
1,763
        
1,941
        
1,763
        
1,941
        
Library
1,156
        
1,159
        
1,156
        
1,159
        
Social services
1,285
        
1,427
        
1,285
        
1,427
        
Education
74,351
      
68,539
      
74,351
      
68,539
      
Interest and fiscal charges
1,393
        
2,057
        
1,393
        
2,057
        
Utility Commission
5,479
        
5,399
        
5,479
        
5,399
        
      Total program expenses
118,432
    
112,215
    
5,479
        
5,399
        
123,911
    
117,614
    
Excess (deficiency) of revenues over expenses
before transfers
(656)
         
(799)
         
(1,619)
      
(1,642)
      
(2,275)
      
(2,441)
      
Transfers
(31)
           
(95)
           
31
             
95
             
-
               
-
               
Change in Net Position 
(687)
         
(894)
         
(1,588)
      
(1,547)
      
(2,275)
      
(2,441)
      
Beginning Net Position, as restated
158,655
    
159,312
    
52,026
      
53,573
      
210,681
    
212,885
    
Restatement
237
           
-
               
237
           
Ending Net Position
$
157,968
    
$
158,655
    
$
50,438
      
$
52,026
      
$
208,406
    
$
210,681
    
Governmental Activities 
 
Approximately 79.1% of these revenues were derived from property taxes, followed by 17.9% from operating and 
capital grants and contributions, 2.8% from charges for services and 0.2% from investment and other general 
revenues. 
 
 
Major factors affecting operations include: 
• 
Operating grants and contributions were up by $6.0 million due primarily to the following: 
There was an increase in the State’s on-behalf contribution for the Teachers’ Retirement System of $3.2 
million.  
There was an increase in the State’s on-behalf contribution for the Teachers’ Retirement System OPEB of 
$1.8 million.  
There was an increase in Special Assistance grants of $796.4 thousand.  
There was an increase in assistance to the School Cafeteria fund of $280.0 thousand.  
• 
Property tax revenues were up by $1.1 million.  

8 
• 
Investment earnings were down by $949.3 thousand from FY20 due to significantly lower interest rates. 
• 
Charges for services up by $255.0 thousand due to the addition of the Student Activity fund for $158.3 
thousand and many services starting up again.   
• 
Capital grants and contributions decreased by $80 thousand, due to the mainly following: 
     General Government capital grants were down by $13.6 due to a one-time Electrical rebate in FY20 for       
the same amount.                    
   Public Works Capital grants were down by $56.6 thousand due to the following: 
         Electrical rebate for the Street Light project Town HVAC was down by $120.8 thousand. 
         LOCIP grant for Pepperbox Lane was down by $185.6 thousand. 
        There was an increase of $249.8 for the Thames River grant.  
           Recreation capital grants were down by $9.2 thousand due to the following: 
        Playground donations were down by $10 thousand from FY20.  
        There was an increase for donations to the Civic Triangle Memorial of $.8 thousand.         
• 
Miscellaneous Revenue was down by $22.2 thousand 
 
Table 3 presents the cost of each of the Town’s five largest programs - education, general government, public 
safety, public works and recreation - as well as each program’s net cost (total cost less revenues generated by the 
activities).  The net cost shows the financial burden to the Town’s taxpayers by each of these functions. 
 
Total Cost of Services
Net Cost of Services
2021
2020
2021
2020
Education  
$
74,351
   
$
68,539
   
$
54,693
     
$
54,670
   
General government
15,705
   
15,856
   
13,826
     
14,679
   
Public safety   
13,999
   
13,150
   
13,337
     
12,308
   
Public works  
8,780
     
8,086
     
7,341
       
6,850
     
Recreation
1,763
     
1,941
     
1,647
       
1,738
     
All others
3,835
     
4,643
     
3,675
       
4,320
     
Totals
$
118,433
 
$
112,215
 
$
94,519
     
$
94,565
   
 
Business-Type Activities 
 
Net position of the Town’s business-type activities (see Table 2) decreased by 3.1% ($50.4 million in 2021 
compared to $52.0 million in 2020).  Revenues and transfers in for the Town’s business-type activities (see Table 
2) increased by $39 thousand ($3.9 million in 2021 compared to $3.9 million in 2020).  The factors driving these 
results include:  
• 
An increase in Sewer use fee revenue of $115 thousand. 
• 
A decrease in transfers in of $64 thousand  
• 
A decrease of investment earnings of $44 thousand. 
• 
An increase of operating grants of $17 thousand 
• 
An increase of capital grants and contributions of $16 thousand 
• 
An increase in expenses of $81.0 thousand. 
 
 
 
 

9 
TOWN FUNDS FINANCIAL ANALYSIS 
 
Governmental Funds 
 
As the Town completed the year, its governmental funds (as presented in the balance sheet - Exhibit III) reported a 
combined fund balance of $35.6 million, which is increase of $4.1 million from last year’s total of $31.5 million as 
restated.  Included in this year’s total change in fund balance is an increase of $3.7 million in the General Fund, a 
decrease of $265.6 thousand in the Capital and NonRecurring Fund and an increase of $730.8 thousand for 
Nonmajor Governmental Funds. 
 
Capital Projects Funds: 
 
o The Capital and Nonrecurring Fund balance decreased by $265.6 thousand due to expenditures of $6.8 
million and revenues of $36.5 thousand and other financing sources or $6.5 million.  Included in other 
financing sources were transfers in of $1.4 million, bond proceeds of $3.7 million along with a premium on 
the bond of 1.4 million. 
 
Non-Major Capital Projects Funds: 
 
• 
The Fleet Management Fund increased by $451.3 thousand due to expenditures of $596.3 thousand being offset 
by revenues and transfers in of $1.1 million. 
• 
The Capital Improvement Fund increased by $253.6 thousand due to expenditures of $986.2 thousand and net 
transfers in and out $1.2 million. 
• 
The Sewer Development and Maintenance Fund increased by $55.7 thousand due to expenditures of $68.1 
thousand being offset by revenues of $123.8 thousand. 
 
Special Revenue Funds: 
 
• 
The Nuclear Safety Emergency Preparedness Fund decreased by $84.8 thousand due to expenditures of 
$133.3 Thousand and grant reimbursements received of $48.5 thousand. 
• 
The Small Cities Grant Fund increased by $78.4 thousand due to loan repayments of the same amount. 
 
Proprietary Funds 
 
The Town’s Proprietary Funds provide the same type of information found in the government-wide financial 
statements, but in more detail. 
 
Overall, proprietary funds net assets total $56.7 million at the end of the year, which includes a $6.2 million fund 
balance in the Internal Service Fund.     
 
Net position of the Utility Commission Fund at the end of the year amounted to $50.4 million.  Factors affecting the 
balance of this fund are included in the discussion of the Town’s business-type activities. 
 
In fiscal year 2021, net position of the Internal Service fund increased by $426.5 thousand from fiscal year 2020.  
This is due to $11.9 million in contributions and other revenues (an increase of $433.5 thousand over fiscal year 
2020), reduced by expenses for claims and program administration of $11.5 million (an increase of $1.2 million 
over fiscal year 2020). 
 

10 
 
General Fund Budgetary Highlights 
 
Revenues were higher than budgetary estimates by $1.7 million and expenditures were less than original budgetary 
estimates by $2.2 million.  Overall revenues over expenditures on a budgetary basis were $3.9 million.  In the 
current year, revenues increased by $955.7 thousand or 1.0 % over the prior year and expenditures decreased by 
$665.4 thousand or 0.7%.   
 
The major factors affecting this year’s annual operating results are as follows: 
 
• 
Property tax revenue was over budgetary estimates by $651.1 thousand and over prior year revenue by $1.3 
million. 
• 
State and Federal grant funding was over budgetary estimates by $223.8 thousand and over prior year revenue 
by $205.3 thousand. 
• 
Assessment revenue is over budgetary estimates by $7.8 thousand and under the prior year by $6.5 thousand. 
• 
License and permit revenue is over budgetary estimates by $777.0 thousand and over the prior year by $619.0 
thousand.  Town clerk fees increased by $70.9 thousand over fiscal year 2020.  The building department is up 
from FY20 by $384.4 thousand, conveyance tax revenue is up from FY20 by $202.6 thousand.  Planning & 
zoning, had an increase of $35.5 thousand over the prior year.   Miscellaneous fees and permits were up from 
FY20 by $16.5 thousand.  Recreation and parks revenue is down from FY20 by $91.0 thousand 
• 
Fines, Penalties and Charges for Services are over budgetary estimates by $4.7 thousand and over the prior 
year revenue by $179.2 thousand.  The biggest change was an increase for miscellaneous revenue of $66.2 
thousand, followed by an increase for tuition fees of $50.3 thousand.  There was an increase of $61.4 
thousand in tipping fee revenue.  Recycling revenue increased by $13.5 thousand.  Senior Services program 
revenue was down by 21.5 thousand and the library was down by $10.3 thousand. 
• 
Other sources of revenue were over budgetary estimates by $49.1 thousand and under the prior year revenue 
by $325.9 thousand.   
• 
Investment income is under budgetary estimates by $213.7 thousand and under prior year revenue by $786.3 
thousand. 
• 
Other Financing Sources, which consists of the cancelation of prior year encumbrances and transfers in from 
the capital improvement fund, was over estimated revenue by $195.0 thousand and under the prior year by 
$203.2 thousand. 
 
Overall Expenditures came in $2.2 million under budgetary estimates.  The largest amounts of unused 
appropriations returned in the current fiscal year are as follows: 
 
• 
The Board of Education returned $1.1 million. 
• 
The Recreation and Parks Department returned $187.4 thousand. 
• 
The Public Works Department returned $116.2 thousand. 
• 
The Senior Services Department returned $115.6 thousand. 
• 
The Police Department returned $114.8 thousand. 
 
The Town’s General Fund balance of $23.8 million reported on Exhibit III differs from the General Fund’s 
budgetary balance of $23.1 million reported in the budgetary comparison in the required supplementary 
information.  This is principally because budgetary fund balance does not include $641.8 thousand of outstanding 
encumbrances at year-end, which are reported as expenditures for budgetary purposes.  The balances for special 
revenue funds financed primarily from operating transfers from the General Fund are also rolled into that fund for 
reporting purposes.  For fiscal year 2021, those balances amounted to $53.7 thousand. 
 
 

11 
 
CAPITAL ASSET AND DEBT ADMINISTRATION 
 
Capital Assets 
 
At June 30, 2021, the Town had $286.8 million invested in a broad range of capital assets, including land, 
buildings, park facilities, vehicles and equipment, roads, bridges, and water and sewer lines.  This amount 
represents a net decrease (including additions and deductions) of $4.5 million, or 1.6%, from last year. 
 
Governmental
Business-Type
Activities
Activities
Total
2021
2020
2021
2020
2021
2020
Land
$
8,982
        
$
8,957
         
$
128
           
$
128
            
$
9,110
        
$
9,085
         
Land improvements
1,995
        
1,543
         
1,995
        
1,543
         
Building and improvements
168,063
    
160,281
     
944
           
978
            
169,007
    
161,259
     
Machinery and equipment
2,519
        
2,970
         
591
           
668
            
3,110
        
3,638
         
Vehicles
5,519
        
5,823
         
263
           
227
            
5,782
        
6,050
         
Infrastructure
53,573
      
54,912
       
43,738
      
45,409
       
97,311
      
100,321
     
Permanent easements
5
               
5
                
5
               
5
                
Software
89
             
94
              
6
               
8
                
95
             
102
            
Construction in progress
388
           
9,306
         
388
           
9,306
         
Total 
$
241,133
    
$
243,891
     
$
45,670
      
$
47,418
       
$
286,803
    
$
291,309
     
 
Major capital asset events during the current fiscal year are noted below: 
 
Governmental Activities: 
 
• 
Construction-in-progress decreased by $8.9 million due mainly to the completion of the public works complex 
renovation project. 
 
• 
Buildings and improvements increased by $7.8 million.  The Municipal complex was completed adding in 
$13.4 million. Depreciation expense reduced the net balance by $5.6 million. 
 
• 
Land Improvements increased by $452 thousand.  The Municipal complex accounted for $534.9 thousand and 
the Waterford Beach project added $37.3 thousand. Depreciation expense reduced the net balance by $120.1 
thousand. 
 
• 
Infrastructure decreased by $1.3 million due mainly due to depreciation expense of $1.8 million.  Additions 
included the completion of various road projects for $408.2 thousand. 
 
• 
Machinery and equipment decreased by $451 thousand due to mainly to depreciation expense of $607.6 
thousand, which was offset by additions of $156.9 thousand. 
 
• 
Vehicles decreased by $304.8 thousand